Buffett's Increasing Momentum to Control OXY
June 21, 2024
In April, we wrote an article about Buffett, Berkshire and OXY, calling it the Sounds of Inevitability.
OXY, Buffett, and the Sounds of Inevitability
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Well that’s interesting . . . That’s what I’m thinking as I peruse OXY’s Q4 results. OXY effectively generated operating cash flow of ~$11.7B, spent about $6.2B on capex, and hence ended with $5.5B of free cash flow. It’s about what we’d expect given OXY realized worldwide oil price of $76.85/barrel for the year.
It was a run-down of Q1 results coupled with an analysis of the CrownRock acquisition. As the months have come and gone though, Berkshire’s final game plan with OXY is becoming increasingly clearer.